Supply network protection under capacity constraint

This Critical Supply network can be victim of different threats such as intentional attacks. It has become extremely important to protect critical supply chain facilities against intentional attacks. This article develops a game-theoretical model to deal with the protection of facilities, in the context of the capacitated fixed-charge location and capacity acquisition problem. Using a game theoretical model, a method is developed to evaluate the utilities of the players (i.e., the defender and the attacker). The model considers a non-cooperative two-period game between the players, and an algorithm is presented to determine the equilibrium solution and the optimal defence strategy under capacity constraints. The approach is compared to other suggested strategies to provide managerial insights in the context of facility location and with the possibility of using extra-capacities.